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1 – 10 of over 1000Ewelina Zarzycka and Joanna Krasodomska
The paper aims to examine if corporate characteristics, general contextual factors and the internal context differentiate the quality and quantity of the disclosed non-financial…
Abstract
Purpose
The paper aims to examine if corporate characteristics, general contextual factors and the internal context differentiate the quality and quantity of the disclosed non-financial Key Performance Indicators (KPIs).
Design/methodology/approach
The study is based on content analysis of the disclosures provided by large public interest entities operating in Poland after the introduction of the Directive 2014/95/EU. The quality of the KPIs disclosures is measured with the disclosure index. Regression analysis and selected statistical tests are used to examine the influence of the selected factors on the differences in the index value and corporate disclosure choices as regards the KPIs.
Findings
The study findings indicate that the sample companies provide a variety of non-financial KPIs in a manner that makes their effective comparison difficult. The research confirms that mainly industry, ecologists and the reporting standard determine the significant differences in the quality of the KPIs disclosures and the quantity of presented KPIs.
Research limitations/implications
The paper adds to the understanding of the differences in the quality of KPIs presentation and the choice of disclosed KPIs.
Practical implications
The paper includes suggestions on how to change corporate practice with regard to the non-financial KPIs disclosures.
Originality/value
We shed additional light on the importance of internal contextual factors such as the reporting standard and the reporters' experience in providing non-financial KPIs disclosures.
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Benedetta Esposito, Maria Rosaria Sessa, Daniela Sica and Ornella Malandrino
This paper aims to explore how the Italian wine industry discloses corporate social responsibility (CSR) practices and quality certifications and the corresponding determinants…
Abstract
Purpose
This paper aims to explore how the Italian wine industry discloses corporate social responsibility (CSR) practices and quality certifications and the corresponding determinants via websites. The study also aims to investigate the relationship between CSR practices and financial performance. The information consistency between the quality certificates reported on corporate websites and official database statements is also explored. Lastly, the paper investigates how the relationship between the size of wineries and CSR disclosure changes according to firms' geographic location.
Design/methodology/approach
This paper analyses CSR corporate communication via the websites of a sample of Italian wineries by adjusting the theoretical framework developed by Amran (2012) to the wine sector's peculiarities. Moreover, a cross-certification analysis and a moderation analysis were performed to fulfil the purpose of the research.
Findings
The analysis revealed the extensive use of CSR disclosure via websites. It was found that company size positively affects CSR disclosure and Quality Certification Disclosure (QCD), while geographic location slightly moderates the relationship between the two variables. In addition, a negative relationship between CSR disclosure and corporate financial performance and its reverse causality emerged. Moreover, for most wineries, information consistency between the quality certificates reported on corporate websites and official database statements was observed.
Research limitations/implications
The study's main limitation is that the search process was performed during lockdown. Therefore, the examined issues could change in the near future due to the shift in priorities that the COVID-19 pandemic is determining.
Practical implications
The results can help managers implement CSR disclosure and QCD practices to enhance stakeholder legitimacy and enable their companies to compete in strongly competitive international markets.
Originality/value
The paper represents the first study investigating online QCD and its consistency in the Italian wine sector.
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Martin Botha, Merwe Oberholzer and Susanna Levina Middelberg
The purpose of this paper is to investigate current practices of water governance disclosure in the food, beverage and tobacco industry and to determine whether the quality of…
Abstract
Purpose
The purpose of this paper is to investigate current practices of water governance disclosure in the food, beverage and tobacco industry and to determine whether the quality of disclosure has a positive association with integrated reporting (IR).
Design/methodology/approach
A water governance disclosure index was developed that used content analysis to code the latest standalone social, environmental and sustainability reports or integrated reports of 49 companies in the food, beverage and tobacco industry. The selected companies are listed on three indices, the ASX, JSE and DJSI. This was followed by quantitatively testing the association between IR and the quality of water governance disclosure, as measured against the qualitatively developed index.
Findings
It was found that the 18 IR companies’ water governance disclosure quality significantly outperformed the 31 companies in the non-IR group, with a calculated index score of 71.67% and 40.97%, respectively.
Research limitations/implications
The evidence indicates that IR is superior to non-IR water governance disclosure, and the study, therefore, contributes to the literature around the legitimacy theory by concluding that IR is supportive to companies to legitimise their being.
Originality/value
The originality of this paper stems from the comparison of water governance disclosures between IR and non-IR firms. Considering that IR preparers outperformed companies in the non-IR group could provide insights to academics, regulators and reporting organisations that IR could be used to enhance water governance disclosure.
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Saverio Petruzzelli and Francesco Badia
This article investigates the quality of stakeholder engagement (SE) process disclosure in the context of non-financial reporting (NFR) introduced by Directive 2014/95/EU (NFRD)…
Abstract
Purpose
This article investigates the quality of stakeholder engagement (SE) process disclosure in the context of non-financial reporting (NFR) introduced by Directive 2014/95/EU (NFRD). SE implies the involvement of the subjects interested in the organization's activity, according to the principle of inclusiveness and the key concepts of the stakeholder theory (ST).
Design/methodology/approach
The authors conducted a content analysis on 75 non-financial statements (NFSs) published by companies listed on the Italian Stock Exchange in 2018 and 2021 to evaluate the evolutionary profiles of SE quality through the years.
Findings
The average level of SE is not significantly high. The research showed an overall poor quality of disclosure concerning stakeholders' key expectations and issues to be addressed and answered. Furthermore, a certain variability emerged in the quality of the disclosure between the various reports, and no significant improvements in SE quality were noted from 2018 to 2021.
Research limitations/implications
The conclusions provide a replicable method for the analysis of SE quality in NFSs and the development of new standpoints in the ongoing debate on the implications of mandatory legislative frameworks for NFR. Content analyses intrinsically present margins of subjectivity. The sample was limited to a subset of NFS from Italy; hence, the results could be country specific.
Practical implications
This work suggests some possible ways of improvement of SE practices by companies.
Originality/value
Original assessment model based on eight variables identified from the academic literature and the most common international sustainability reporting standards. These variables were stakeholder identification, stakeholder selection process, degree of involvement, SE approach, dialogue channels, SE results, different points of view and integration of the SE process.
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Manh Dung Tran, Khairil Faizal Khairi and Nur Hidayah Laili
The purpose of this paper is to investigate the differences of audit quality of financial statements among auditors, including Big 4 and non-Big 4 auditors.
Abstract
Purpose
The purpose of this paper is to investigate the differences of audit quality of financial statements among auditors, including Big 4 and non-Big 4 auditors.
Design/methodology/approach
By employing cross-sectional analysis of compliance (a proxy of audit quality) of goodwill impairment testing of listed firms in the context of Hong Kong, the variation of audit quality of financial statements of auditees has been shown.
Findings
Audit quality of Big 4 auditors is viewed to be higher than that of non-Big 4 audit firms and the homogeneity of audit quality among Big 4 auditors is not long accepted, but variation.
Practical implications
Even though unqualified opinions have been given on the auditors’ reports, the quality of financial statements audit is a skeptical issue because of the high level of non-compliance of goodwill impairment testing under International Financial Reporting Standards.
Originality/value
This study does emphasize the higher audit quality of financial statements of Big 4 auditors than that of non-Big 4 auditors and stresses the variation of audit quality among Big 4 auditors.
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Ericka Costa, Caterina Pesci, Michele Andreaus and Emanuele Taufer
This paper aims to investigate the application of the Italian Banking Association (ABI) industry-specific reporting standard in microfinance institutions by determining whether or…
Abstract
Purpose
This paper aims to investigate the application of the Italian Banking Association (ABI) industry-specific reporting standard in microfinance institutions by determining whether or not a banking sector reporting standard can enhance non-financial reporting (NFR) quality and volume to meet stakeholders’ information needs in the specific setting investigated.
Design/methodology/approach
This paper develops an analysis of available ABI documents from 2006 to 2013 to conduct a content analysis of the quality and volume of the NFR of 98 Italian cooperative banks (CBs) during the 2008–2009 ABI implementation year. These data are analysed using two regression models to investigate the quality and volume of NFR disclosures.
Findings
The findings suggest that for CBs in the Italian banking sector, the information provided in the non-financial reports in adherence to the ABI sector reporting standard is relevant in terms of both volume and quality. However, when investigating specific categories of disclosure such as the community, the relevance of the ABI reporting standard is fairly low. The authors question the “one-size-fits-all” approach favouring a more sector-tailored approach to ensure that the NFR covers key sectoral concerns.
Practical implications
The high heterogeneity in the sector could negatively affect the capability of sector-specific standards to truly foster reliable, complete and extensive NFR. Therefore, NFR standard-setters, such as the International Sustainability Standards Board, should consider these heterogeneities.
Social implications
Reporting standardisation should be multi-voiced and include different – even contrasting – perspectives to promote expert and non-expert engagements.
Originality/value
This paper focuses on hybrid organisations and shows how the theoretical approach of dialogic accountability can improve the quality of sector-specific reporting standards.
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Collins G. Ntim, Teerooven Soobaroyen and Martin J. Broad
The purpose of this paper is to investigate the extent of voluntary disclosures in UK higher education institutions’ (HEIs) annual reports and examine whether internal governance…
Abstract
Purpose
The purpose of this paper is to investigate the extent of voluntary disclosures in UK higher education institutions’ (HEIs) annual reports and examine whether internal governance structures influence disclosure in the period following major reform and funding constraints.
Design/methodology/approach
The authors adopt a modified version of Coy and Dixon’s (2004) public accountability index, referred to in this paper as a public accountability and transparency index (PATI), to measure the extent of voluntary disclosures in 130 UK HEIs’ annual reports. Informed by a multi-theoretical framework drawn from public accountability, legitimacy, resource dependence and stakeholder perspectives, the authors propose that the characteristics of governing and executive structures in UK universities influence the extent of their voluntary disclosures.
Findings
The authors find a large degree of variability in the level of voluntary disclosures by universities and an overall relatively low level of PATI (44 per cent), particularly with regards to the disclosure of teaching/research outcomes. The authors also find that audit committee quality, governing board diversity, governor independence and the presence of a governance committee are associated with the level of disclosure. Finally, the authors find that the interaction between executive team characteristics and governance variables enhances the level of voluntary disclosures, thereby providing support for the continued relevance of a “shared” leadership in the HEIs’ sector towards enhancing accountability and transparency in HEIs.
Research limitations/implications
In spite of significant funding cuts, regulatory reforms and competitive challenges, the level of voluntary disclosure by UK HEIs remains low. Whilst the role of selected governance mechanisms and “shared leadership” in improving disclosure, is asserted, the varying level and selective basis of the disclosures across the surveyed HEIs suggest that the public accountability motive is weaker relative to the other motives underpinned by stakeholder, legitimacy and resource dependence perspectives.
Originality/value
This is the first study which explores the association between HEI governance structures, managerial characteristics and the level of disclosure in UK HEIs.
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Stefanía Carolina Posadas, Silvia Ruiz-Blanco, Belen Fernandez-Feijoo and Lara Tarquinio
This paper aims to analyse the impact of the European Union (EU) Directive on the quality of sustainability reporting under the institutional theory lens. Specifically, the…
Abstract
Purpose
This paper aims to analyse the impact of the European Union (EU) Directive on the quality of sustainability reporting under the institutional theory lens. Specifically, the authors evaluate what kind of institutional pressure has the highest impact on the quality of corporate disclosure on sustainability issues.
Design/methodology/approach
The authors build a quality index based on the content analysis of sustainability information disclosed, before and after the transposition of the Directive, by Italian and Spanish companies belonging to different industries. The authors use an OLS regression model to analyse the effect of coercive, normative and mimetic forces on the quality of the sustainability reports.
Findings
The results highlight that normative and mimetic mechanisms positively affect the quality of sustainability reporting, whereas there is no evidence regarding coercive mechanisms, indicating that the new requirements do not provide a significant contribution to the development of better reporting practices, at least in the two analysed countries.
Originality/value
To the best of the authors’ knowledge, this is one of the few studies assessing the quality of sustainability reporting through an analysis involving the period before and after the implementation of the EU Directive. It enriches the literature on institutional theory by analysing how the different dimensions of isomorphism affect the quality of information disclosed by companies according to the EU requirements. It contributes to a better understanding of the impact of the non-financial information Directive, and the results of this paper can be relevant for regulators, practitioners and academia, especially in view of the adoption of the new Corporate Sustainability Reporting Directive proposal.
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Mohamed Samy El-Deeb, Tariq H. Ismail and Alia Adel El Banna
This paper aims to examine the impact of environmental, social and governance (ESG) disclosure and firm value (FV), as well as, pinpoints the role of the audit quality (AQ) as a…
Abstract
Purpose
This paper aims to examine the impact of environmental, social and governance (ESG) disclosure and firm value (FV), as well as, pinpoints the role of the audit quality (AQ) as a moderating variable on such impact; where the authors hypothesize that AQ modulates the relationship between ESG disclosure and the FV.
Design/methodology/approach
Data of a sample of firms listed on the Egyptian Stock Exchange Market (EGX) were collected over the period of 2017–2021 and analyzed using the regression and 2SLS models.
Findings
The results suggested that: (1) the ESG has a significant positive impact on the FV in the EGX, and (2) AQ has a significant impact, as a moderating variable, on the relationship between ESG disclosure and FV.
Research limitations/implications
The findings would help the Egyptian market authorities in realizing the importance of integrating ESG information within the financial reports of the listed firms. The findings could also help in developing effective disclosure procedures to provide shareholders with useful information.
Originality/value
This paper contributes to the literature regarding the ESG disclosure components and the FV value by considering AQ in testing such relationship.
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Franz Eduard Toerien and Elda du Toit
The purpose of this study is to evaluate whether the amendments to International Accounting Standard (IAS) 39 and the introduction of International Financial Reporting Standards…
Abstract
Purpose
The purpose of this study is to evaluate whether the amendments to International Accounting Standard (IAS) 39 and the introduction of International Financial Reporting Standards (IFRS) 9 enhanced the readability, and thus the quality and usefulness of risk disclosure information.
Design/methodology/approach
Readability analyses are performed on companies listed on the Johannesburg Stock Exchange (JSE) from 2005 to 2021. The sample period includes the period when companies disclosed information according to IAS 39 (2005–2017) and IFRS 9 (2018–2021).
Findings
The results of the analyses show risk disclosures for JSE-listed companies to be complex and difficult to understand. Furthermore, risk disclosures have become longer and less readable with the introduction of amendments to IAS 39 and the introduction of IFRS 9.
Research limitations/implications
This study uses readability measures as a proxy for the complexity and usefulness of risk disclosures. The amount of utility a user of financial statements derives could be dependent on other factors such as the quality of disclosure, individual user background and perceptions.
Practical implications
The results have valuable implications for the various stakeholders that make use of the information contained in financial statements. Stakeholders such as regulators and standard setters should carefully assess how accounting standards change to ensure that one of the key objectives of the IASB, namely, to provide information that is relevant, reliable and understandable, is met.
Originality/value
The results of this study contribute to the discourse on the usefulness of companies’ risk disclosures. Though, to the best of the authors’ knowledge, this is the first study to compare the readability of risk disclosures from an emerging market perspective, the results can be applied to other countries using IFRS to assess the readability of risk disclosures.
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